Behind 3 of Last Week's Consumer Headlines

Fired From the Company That Made Him Famous, an Entrepreneur Seeks Payback

Macy’s has a partnership with Men’s Wearhouse, allowing customers to rent tuxedos from MW in Macy’s stores

  • This is bold – I can’t think of another retailer also offering rentals
  • I think rentals will disrupt retail over time (and tux rentals are nothing new) and agree it makes sense for retailers to hedge – but it’s hard to do this without making a trade-down from purchase to rental all too easy
  • Macy’s has to believe they’re drawing a customer who was never going to buy a tux from them so they’d rather get a revenue share from MW than nothing at all (bonus: attracting a new, younger customer who might make actual purchases in the store)

http://www.inc.com/magazine/201606/tom-foster/george-zimmer-mens-wearhouse.html

Amazon Is Quietly Eliminating List Prices

  • Amazon doesn’t believe it needs to offer price-value to customers – how nice!
  • Will Amazon come right out and say customers may pay more for the Amazon convenience?
  • Other retailers have learned how easy it is for the online customer to compare prices and buy at the lowest one… I hope Amazon does, too

http://www.nytimes.com/2016/07/04/business/amazon-is-quietly-eliminating-list-prices.html

E-Commerce Retailer Chubbies Beefs Up Loyalty Program

The company offers thank you gifts with customer orders, a successful but time-consuming process

  • This is a refreshing twist on the points-based loyalty articles I usually see so I can imagine how welcome the thank you gifts are by customers
  • Because the selection of these gifts varies and is a core piece of the value prop, Chubbies selected an inventory management platform that would facilitate what some might consider operationally optional (good for them!)
  • Chubbies is a brand that’s sold online and via showroom – when will we stop referring to these companies as “e-commerce retailers”? (see headline) 

http://risnews.edgl.com/retail-news/E-Commerce-Retailer-Chubbies-Beefs-Up-Loyalty-Program105945